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  "documentTitle": "Essential Utilities, Inc. (WTRG)",
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  "authorName": "Spruce Point Capital Management",
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  "presentationDate": "2023-03-08 00:00:00",
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  "notes": "The slide uses a side-by-side comparison of financial tables to expose the 'two sets of earnings' narrative.",
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      "kind": "callout",
      "text": "Blame It On The Weather? Over $42m of “Trust Us” Adjustments That Can’t Be Audited By Investors",
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      "text": "In total, WTRG made $42m of adjustments that investors cannot audit or evaluate.",
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      "text": "Spruce Point warns that WTRG is calculating two sets of earnings: one headline figure that is prominently displayed to investors in its earnings report, and another that is buried as an “Appendix A” to the Proxy Statement used to handsomely reward management for what we believe are excuses such as “the weather”. We believe that weather variation is an ordinary and known risk as part of natural gas demand, and not one to be adjusted for. In total, WTRG made $42m of adjustments that investors cannot audit or evaluate. Diluted EPS is the largest weighting at 35% towards management’s short-term incentive bonus. At a high level, we begrudge using this as a metric towards management pay given WTRG’s cash flow margins are in perpetual decline. WTRG’s substantial debt-burden and inability to cover its dividend should make management laser-focused on cash flow margin improvement.",
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      "text": "....Vs. How Management Pays Itself: Diluted EPS $1.80",
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      "text": "What WTRG Sells To Investors: Diluted EPS $1.67",
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      "text": "Two Sets of Earnings Realities: One That Allows Management To Reap Unjust Compensation",
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